Sabre sells Yukon assets to Victoria Gold for $13.5 million
Sabre Gold Mines Corp [SGLD-TSX] has sold its Brewery Creek project and other mineral assets in the Canadian Yukon to Victoria Gold Inc. [VGCX-TSX] for $13.5 million.
Sabre shares advanced on the news, rising 3.8% or $0.005 to 13.5 cents. The shares currently trade in a 52-week range of 40 cents and 12.5 cents.
“Selling Brewery Creek allows Sabre to place its attention and focus solely on the fully-permitted Copperstone Project in Arizona,’’ said Sabre President and CEO Andrew Elinesky. “With the company recapitalized, we look forward to furthering the development of Copperstone and working towards gold production.’’
The sale was completed under the terms of a share purchase deal between Sabre and Victoria, whereby Victoria acquired all of the issued and outstanding shares of Golden Predator Mining Corp., a wholly-owned subsidiary of Sabre, which indirectly held a 100% interest in the Brewery Creek property as well as certain other mineral assets, including the Gold Dome and Grew Creek exploration properties.
As a result, Golden Predator is now a unit of Victoria Gold, which paid $8.5 million in cash on closing. The balance is payable as follows:
- $500,000 in cash and an additional $2.5 million in cash or Victoria shares at Victoria’s election, payable on the 12-month anniversary of the closing date.
- $500,000 in cash and an additional $1.5 million in cash or Victoria shares at Victoria’s election, payable on the second anniversary of the closing date.
Victoria’s flagship Eagle gold mine is situated on the Dublin Gulch gold property in the central Yukon Territory, about 375 kilometres north of Whitehorse and approximately 85 kilometres from the town of Mayo.
Brewery Creek is a formerly-producing heap leach project, covering 181 square kilometres and located in the northwestern Yukon, about 55 kilometres east to Dawson City. It is also located 120 kilometres west of Victoria Gold’s flagship Eagle gold mine.
According to a NI 43-101 technical report, Brewery Creek hosts a measured and indicated resource of 34.5 million tonnes of grade 1.03 g/t gold, containing 1.4 million ounces of gold. On top of that is an inferred resource of 36 million tonnes of grade 0.88 g/t gold, or 1.02 million ounces. Brewery Creek is also the subject of a preliminary economic assessment.
“With the acquisition of Sabre’s Yukon assets, we are pleased to be expanding our footprint and asset base in our own backyard,’’ said Victoria Gold President and CEO John McConnell.
Victoria Gold shares advanced on the news, rising 2.5% or 16 cents to $6.48.
The company reported record gold production of 45,568 ounces in the second quarter of 2023. The company has said 2023 production guidance remains intact at the Eagle Gold mine and is expected to come in at between 160,000 ounces and 180,000 ounces.